New Strain in UK and Deal on Stimulus

On Friday, the large-caps made a small gap down while the QQQ made a small gap up at the open.  However, all 3 major indices then immediately sold off for most of the day.  A strong rally the last 20 minutes (perhaps on S&P 500 rebalancing or on Quadruple-witching preparation) still left all 3 with ugly black candles, but at least well up off the lows.  (In other words, all 3 indices were black Hammer-type candles with longer lower wicks.)  On the day, the SPY lost 0.82%, the DIA lost 0.52%, and QQQ lost 0.30%.  The VXX rose almost 2% to 17.08 and T2122 fell just out of the overbought territory to 76.74.  10-year bond yields rose to 0.945% and Oil (WTI) rose to $49.10/barrel.

The weekend drama was about a stimulus and government spending deal as Friday ended with a government shutdown expected and no stimulus deal yet done.  Late Friday night Congress kicked the can down the road by passing a 2-day stop-gap spending bill that ended at Midnight on Sunday night.  The hold-up on the stimulus deal was down to a few GOP Senators who want to end the Fed’s Lending Authority (kill the programs where the FOMC has been lending to businesses and banks as well as buying bonds after emergency previous Congressional authorization).  Late Sunday the two sides finally reached a deal, but Congress didn’t have time to type up and pass that agreement before the shutdown deadline.  So, they passed an additional one-day stop-gap spending bill last night that the President signed to keep the doors open. 

The other major news from the weekend was that Friday evening the FDA approval of the MRNA vaccine.  This announcement was made at the same press conference where the White House Vaccine Chief admitted communications problems had caused 14 states to believe they were getting up to 40% more of the PFE vaccine doses than they had actually been allocated.  So, the MRNA vaccine shipping may help fill some holes.  The MRNA vaccine began shipping on Sunday and the first vaccinations with this drug should happen Monday.  The main advantage of the MRNA vaccine is that it requires slightly less stringent (still -50 degrees) temperatures to store and ship, making its distribution easier.  The CDC followed the FDA lead Sunday by authorizing hospitals to administer the new vaccine.

Related to the virus itself, US infections continue to rage across the US, but came down just a bit.  The totals have risen to 18,267,579 confirmed cases and 324,869 deaths.  As mentioned, the weekend saw a small reduction in new cases, but the 7-day daily average remains 217,630 (over one-third of the world's cases) and the average number of deaths rose to 2,628 deaths per day. The apparent new threat (new strain) out of UK caused the US Surgeon General to a statement Sunday. He said it is too early to tell if the new strain of the virus would be prevented by the two current vaccines, but other vaccine candidates are on the way in the months to come...so we should trust the scientists.

Globally, the numbers rose to 77,264,853 confirmed cases and the confirmed deaths are now at 1,701,599 deaths.  As a reference, the world is averaging about 640,000 new cases and almost 11,000 new deaths per day.  In the UK, London was placed under emergency lockdown and PM Johnson says that the Christmas pause in restrictions will be modified as the Health Minister explained that the new virus strain (mutation) is out of control and spreading far worse than the original strain.  This news caused the reimposition of restrictions on travelers from the UK in many countries as the US, Denmark, the Netherlands, and even Australia have now detected cases of this new variant.  This includes a full stop of travel from the UK to France.  In more positive news for Europe, the EU Drug Regulator is expected to authorize the PFE/BNTX vaccine today.

Overnight, Asian markets were very mixed.  China was green as Shenzhen (+1.87%), Taiwan (+0.95%), and Shanghai (+0.76%) led the gainers.  However, most Asian exchanges were red with Thailand (-5.44%) and India (-3.14%) far outpacing the pack.  In Europe, markets are red across the board on massive fear stoked by the new virus strain in the UK.  Losses have been in the 2%-3% range as of mid-day.  Among the big 3 bourses, FTSE is at -2.03%, DAX at -2.84%, and CAC at -2.63%.  As of 7:30 am, US futures are pointing to a significant gap lower.  Right now the DIA is implying a -1.38% open, the SPY implying a -1.55% open, and the QQQ implying a -0.99% open.

There is no major economic news or major earnings reports for Monday.

With no economic data or earnings to change the storyline, markets are being dragged South by the new strain of virus in the UK. Expect the details of the stimulus agreement to also get some traction, but its a question of whether Mr. Market focuses on what didn't make the deal or what did. At least at the start, the Bears have the upper hand. The new MRNA vaccine is the wildcard, but remember PFE sold off in the days after the approval and release of their vaccine. So, be careful and remember this is a holiday-shortened week with light volume expected. It remains very possible that all the big money has already left town for Christmas vacation.

Focus on maintaining discipline. Respect the trend, support and resistance, and price action. Keep working the process and booking those base hits. Don't let greed get in the way of you achieving goals. Success is built one trade at a time, not by trying to hit the lottery. In short, get rich slowly...one trade at a time, just consistently achieving goals.

Ed

Swing Trade Ideas for your consideration and watchlist: No Trade Ideas for Monday. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Waiting on Relief and Vaccine Approval

On Thursday, markets gapped about half a percent higher after unexpectedly high Initial Jobless Claims offset optimism stemming from stimulus deal and a second vaccine approval.  After the open, prices ground sideways the rest of the day.  This left us with all three major indices printing indecisive Dojis at new all-time high closes.  On the day, SPY gained 0.56%, DIA gained 0.44%, and QQQ gained 0.65%.  The VXX fell almost 1.5% to 16.75 and T2122 rose deeper into the overbought territory at 94.21.  10-year bond yields rose to 0.935% and Oil (WTI) rose over a percent to $48.33/barrel.

In late afternoon Bloomberg reported that the stimulus deal is being hindered by GOP efforts to end virus lending programs.  However, at the other end of the spectrum, 2 Senators (one from each party) are continuing to fight for a $1,200 direct payment to Americans instead of the $600 agreed by the 4 Leaders on Tuesday night.  So, it seems while the Leaders came to an agreement, the rank and file still have other ideas.  As of early Friday morning, House and Senate leaders said they expect a short government shutdown (funding runs out at midnight Friday), followed by a weekend approval vote on a deal covering both government funding and stimulus.

For the second time in two days (and third time in two months), GOOG was sued for antitrust activities on Thursday.  This time by a bipartisan group of Attorneys General from 38 states.  This suit focuses on allegations GOOG has maintained a monopoly in general search and search advertising.  While all these suits will take years to wind through the courts, the repeated announcements don’t help the stock one bit.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 17,627,070 confirmed cases and 317,929 deaths.  Thursday did not see any more bad records but was still a bad day with almost 232,000 new cases and nearly 3,300 deaths.  This brings the 7-day averages to 220,690 new cases and 2,599 deaths per day.  Of course, the FDA Advisory Panel did recommend the MRNA vaccine for emergency use and FDA and FDA Head Dr. Hahn promised swift action (it will be approved today).  If all goes as planned, shipments of MRNA vaccine is expected to start Monday. This comes not a moment too soon as arguments between states, the federal government and PFE surfaced last night over how much vaccine was promised this week and whether shipment allotments have been reduced for the next couple weeks.

Globally, the numbers rose to 75,407,507 confirmed cases and the confirmed deaths are now at 1,671,135 deaths.  As a reference, the world is averaging about 642,000 new cases and almost 11,000 new deaths per day.  In Asia, Australia is beginning new travel bans between some of its states after a new cluster of cases was found around Sydney (at beaches).  In South Korea, 500 Covid-19 patients are waiting on a hospital bed to open up and have waited more than a day at this point.

Overnight, Asian markets leaned heavily to the down side.  Only a flat South Korea and India avoided red ink.  New Zealand (-1.60%), Malaysia (-1.31%), and Australia (-1.20%) led the losses.  In Europe, markets are mostly green so far today.  Only Belgium (-0.12%), Portugal (-0.63%), and Russia (-0.53%) buck the trend.  However, the big 3 bourses are typical of the modestly green overall picture.  Among those, the FTSE (+0.20%), DAX (+0.37%), and CAC (+0.01%) are all up slightly.  As of 7:30 am, US futures are pointing to a flat open.  Right now the DIA is implying a +0.03% open, the SPY implying a +0.12% open, and the QQQ implying a +0.08% open.   

The major economic news for Friday is limited to Q3 Current Account (8:30 am), Fed Bank Stress Test Results (4:30 pm) and a Fed Speaker (Brainard at 11:10 am).  Major earnings releases include DRI and WGO before the open.  Then NKE reports after the close.

Without a ton of economic data, a government stalemate, and sitting on Option Expiration Friday, the market may wait for more news before making its next move. However, we do sit at all-time highs, and a stimulus deal and new vaccine approval are expected very soon. So, the bulls do have the upper hand. Either way, be careful heading into the weekend in front of a holiday-shortened week. It is very possible all the big money has left town already.

Keep working the process and booking those base hits. Money in the bank trumps a "possible lottery ticket" every time. Keep your discipline and respect the trend, support and resistance, and price action. In short, get rich slowly...one trade at a time, just consistently achieving goals.

Ed

Swing Trade Ideas for your consideration and watchlist: PLAN, PAYC, AUY, JNJ, SHAK, KSU, ALEC, TSLA. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Relief Deal, MRNA Vaccine Approval Close

The market opened flat after hope for stimulus was offset by a big November Retail Sales miss in the premarket.  After that markets ground sideways the rest of the day.  All 3 major indices printed indecisive candles (more wick than body), but QQQ also closed at another all-time high close.  On the day, SPY was up 0.13%, DIA down 0.16%, and QQQ gained 0.55%.  The VXX lost 3% on the day to 16.98 and T2122 fell a bit to 89.27 (still well into the overbought territory).  10-year bond yields were up to at 0.921% and Oil gained slightly to $47.83.

During the day, it was leaked that Congressional Leaders had more or less finalized negotiations on a $900 billion stimulus bill Tuesday night.  The deal reportedly will not include either business liability waivers or aid to state/local governments.  However, it will include another $600 direct payment to Americans.  The hope was to introduce the bill Wednesday after having it written up.  However, that did not get done.  So, Senate Majority Leader McConnell told Senators to be ready for a weekend vote on the bill.  This would mean the government would shut down just after midnight Friday night as the Stimulus bill will be attached to a government funding extension.  Also, during the day, the Fed raised its economic forecast to 4.2% GDP growth and unemployment back down to 5% in 2021.  Beyond that, Fed Chair Powell said they are holding rates the same and will continue with current policies (near-zero rates, bond buying, etc.) until we reach full employment.

GOOG was also sued Wednesday for antitrust activities by 10 states Attorneys General, led by Texas.  This suit also names FB as a co-conspirator and focuses on the alleged monopoly of advertising technologies and services (data tracking, which enables ad targeting).  This comes just a day after the new European law was proposed which will regulate and fine the same technologies as too invasive to personal privacy.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 17,394,314 confirmed cases and 314,629 deaths.  Wednesday saw another record number of new cases (248,646) and deaths (3,538).  This brings the 7-day averages of 220,217 new cases and 2,570 deaths per day.  Meanwhile, the FDA approved a second over-the-counter rapid home covid-19 test (from ABT) on Wednesday.  On Thursday the FDA Vaccine Advisory Panel will debate and then vote on whether to recommend the MRNA vaccine for emergency use.  (Spoiler alert: they’ll recommend it.)  Following a recommendation, it will take hours to a day for the FDA to approve emergency use and shipping of the vaccine will begin about a day after that approval (which will give the CDC time to approve the administration of the MRNA vaccine).

Globally, the numbers rose to 74,662,200 confirmed cases and the confirmed deaths are now at 1,658,062 deaths.  As a reference, the world is averaging about 637,000 new cases and almost 11,000 new deaths per day.  French President Macron has tested positive shortly after a meeting with other EU leaders.  So, many other EU leaders are also now in isolation.  In Seoul South Korea, they have experienced the first case of a Covid-19 patient dying while waiting on a hospital bed to open up.  This comes as Japan also reported another increase in ICU patients. Interestingly, in Russia, President Putin told his media that mass vaccinations using the Russian "Sputnik" vaccine were necessary for the country. However, he said he would not personally be getting vaccinated because he was "too old." (This from a man who constantly promotes the idea of his strength, vigor, and fitness.)

Overnight, Asian markets were mixed, but leaned to the green side.  Australia (+1.16%), Shanghai (+1.13%), and Shenzhen (+0.93%) led the gainers.  Singapore (-0.51%) and Malaysia (-0.42%) led the modest losses.  In Europe we see a similar picture so far today.  Russia (+1.07%) is an outlier, but the FTSE (+0.01%), DAX (+0.80%), and CAC (+0.40%) are typical.  The only losses are very modest and seen among the smaller exchanges in Europe.   As of 7:30 am, US futures are pointing to another modestly bullish open.  The SPY is implying a +0.52% open, the DIA implying a +0.42% open, and the QQQ implying a +0.48% open at this point in the premarket.    

The major economic news for Thursday includes Nov. Building Permits, Nov. Housing Starts, Weekly Initial Jobless Claims, and the Philly Fed Mfg. Index (all at 8:30 am).  The major earnings reports include CAN, GIS, JBL, NAV, RAD, SAFM, and WOR all before the open.  Then after the close BB and FDX report.

With a considerable amount of economic data at 8:30 am, it is hard to gauge the open just yet. However, the bulls have the upper hand at the moment. With the announcement of a stimulus deal ready for voting and the approval of another vaccine expected, they should have the edge later in the day as well. However, we are counting on politicians and bureaucrats to deliver as expected. So, continue to be careful not to bank too much on the news. Remember a lot of potentially bad news from the virus itself is still possible.

Keep working the process and booking those base hits. Money in the bank trumps a "possible lottery ticket" every time. Keep your discipline and respect the trend, support and resistance, and price action. In short, get rich slowly...one trade at a time, just consistently achieving goals.

Ed

Swing Trade Ideas for your consideration and watchlist: WYNN, CHFS, SONO, VALE, AMD, CLF, X, BLNK, DKNG, CELH, FTCH. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Stimulus Hope and Fed Meeting Fear

Markets gapped up eight-tenths of a percent before grinding sideways for a few hours.  After a small mid-day rally, the ground sideways again the rest of the day, closing near the highs.  On the day, SPY closed up 1.34%, DIA up 1.18%, and the QQQ up 1.07%.  The VXX fell over 4.5% to 17.56 and T2122 spiked back up deep into the overbought territory at 95.41.   10-year bond yield rose again to 0.908% and Oil (WTI) rose over a percent to $47.54 (the highest since late February).

During the day, House Speaker Pelosi invited her 3 counterpart leaders (House Minority Leader McCarthy, Senate Majority Leader McConnell and Senate Minority Leader Schumer) to a meeting to discuss stimulus and a government funding extension.  The four met just after the close, adjourned and then reconvened at 7:30pm.  This meeting came after she completed a hour-long negotiation call with Treasury Sec. Mnuchin.  McConnell also told reporters Congress would not leave town until a Covid package was complete.  There was no report after the evening session, but the developments have raised hope for a deal.

In a follow-up to a previous story about a new EU Law which can fine tech companies up to 10% of their global revenue if they don’t act as good gatekeeper, FB attacked AAPL overnight in praising the new law.  A FB spokesman went on to say they hoped the new law will keep AAPL in check from harming consumers and developers.  This came after AAPL had previously said it was enabling a privacy feature to allow users to block apps from tracking them across different platforms. (Of course, AAPL will still track users over those platforms.)  AAPL responded that FB's real problem was that its business model is about invasive tracking of consumers. So, this spat is not as much related to the law as it is over AAPL trying to assert dominance over which tech company controls all the data about user’s lives, habits, and preferences to enable it to sell better marketing to advertisers.  This will eventually become a hot topic in the US as well.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 17,143,942 confirmed cases and 311,073 deaths.  We are now seeing 7-day averages of 216,733 new cases and 2,528 deaths per day.  MRNA submitted the paperwork for approval of their vaccine Tuesday.  Also during the day, the FDA approved the first over-the-counter rapid home covid-19 test (from an Australian company).  FL reported that a PFE production problem has caused the next two weeks of vaccine shipments to that state to be placed on hold.  NYC Mayor DeBlasio says he expects another city-wide lockdown right after Christmas based on the current trends.

Globally, the numbers rose to 73,938,418 confirmed cases and the confirmed deaths are now at 1,644,775 deaths.  As a reference, the world is averaging about 628,000 new cases and almost 11,000 new deaths per day. In the UK, Health Minister Hancock announced a new mutation of the virus has been found, which is spreading faster than the original variants, especially in specific places like London.  In related news, London was placed under the country’s toughest tier of restrictions as cases spike in the city. In addition, two of the largest British Medical Journals have posted editorials pleading with PM Johnson to not relax restrictions over Christmas as he has promised he will. At the same time, in Northern Ireland, hospitals are beyond full capacity with at least one hospital using parked ambulances to hold dozens of over-flow patients.

Overnight, Asian markets were mostly in the green. Taiwan (+1.68%) was by far the leader among gainers with Hong Kong (+0.97%) and Australia (+0.72%) being more typical.  The only red seen was modest losses in Chinese exchanges.  In Europe, we see a similar picture so far today.  Only Belgium and Finland show any red (modest) as most exchanges are solidly bullish mid-day.  The FTSE (+0.98%) is u, as is the DAX (+1.54%), and the CAC (+0.61%).  As of 7:30 am, US futures are pointing to a modestly bullish open.  The SPY is implying a +0.26% open, the DIA implying a +0.23% open, and the QQQ implying a +0.17% open at this point in the premarket.  

The major economic news for Wednesday includes Nov. Retail Sales (8:30 am), Dec. Mfg. PMI and Dec. Services PMI (9:45 am), Oct. Business Inventories (10 am), Crude Oil Inventories (10:30 am), FOMC Interest Rate Decision, Fed Interest Rate Projections, and FOMC Statement (all at 2 pm), Fed Chair Press Conf. (2:30 pm).  Some financial news outlets are worrying over a possible disappointment by the Fed, saying we may see a lessening of the Doveish tone, which may spook markets. The major earnings reports on the day are limited to TTC before the open and both ABM and LEN after the close.

With a considerable amount of economic data today and hope for more progress on a stimulus deal, the bulls may have the edge, but markets may wait to see what the Fed tone is this afternoon before making any big moves. Just remember that it's politicians that are behind stimulus news. So, anything that comes out are just as likely to be positioning as they are to be a deal announcement. The only edge a deal has remains time pressure as the lawmakers want to leave town as soon as possible. So, just be careful to not get carried away on market news.

Maintain discipline to your trading rules and focus on your process. As always, respect the trend, support and resistance, and price action. Put those singles and doubles in the bank when the market gives them to you. Don't swing for the fences on every trade. As they say, Bulls make money and Bears make money, but pigs get slaughtered. So, leave the top and bottom picking to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: PLUG, WFC, NIO, BLNK, CPRI, EYE, CLF, SPWR. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Vaccinations Begun and Stimulus Hope

Markets gapped up about 0.65% Monday and after a grind sideways for about an hour the large-caps sold off.  However, the QQQ maintained their sideways grind all day long.  At the close, the SPY and DIA printed ugly black candles while the QQQ left a high wick.  On the day the SPY was down 0.47%, the DIA was down 0.63%, and the QQQ gained 0.73%.  The VXX gained 2.3% to 18.42 and T2122 fell sharply back into the mid-range at 51.75.  10-year bond yields rose slightly to 0.895% and Oil (WTI) gained three-quarters of a percent to $46.94 (the highest close since March).

During the day, a bipartisan group from the Representatives proposed a $908 billion stimulus compromise bill in the House.  Interestingly, this bill essentially mirrors the bipartisan proposal made in the Senate a few weeks ago, but which Senate Majority Leader McConnell would not endorse and has said should be replaced by the White House’s late proposal.  The Senate bipartisan group plans to introduce their proposal as 2 bills later Monday.  One includes both the business immunity and $160 billion in aid for state and local governments.  The other includes all other provisions that have been essentially agreed in negotiations.

In Brexit news, there remains no deal with both sides saying they are far apart. All the deadlines for reaching a deal that can be debated in the respective Parliaments and implemented in time have now passed.  Still, the two leaders claim there is still hope with two weeks left until a crash-out of the UK-Europe trade deal.  Related to this, the UK has taken action similar to what President Trump wants in the US.  The British bill will hold websites (specifically social media) liable for what is posted by any of their users.  Fines range up to 10% of global revenue per incident of what the government then says is harmful content.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 16,942,980 confirmed cases and 308,091 deaths.  We are now seeing 7-day averages of 218,226 new cases and 2,527 deaths per day.  However, vaccinations did begin Monday in a relative handful of hospitals across the country.  The majority of states have received at least some doses of vaccine in a herculean logistics effort.  Sec. Azar (HHS) said that if vaccines from MRNA, AZN, and JNJ are all approved quickly, it may be possible for each American who actually wants one to get their first dose by the end of March.  This comes as GOOG pushed back the company’s return to offices until at least September. 

Globally, the numbers rose to 73,292,455 confirmed cases and the confirmed deaths are now at 1,630,581 deaths.  As a reference, the world is averaging about 627,000 new cases and almost 11,000 new deaths per day. In the UK, Health Minister Hancock announced a new mutation of the virus has been found, which is spreading faster than the original variants, especially in specific places like London.  In related news, London was placed under the country’s toughest tier of restrictions as cases spike in the city. In addition, two of the largest British Medical Journals have posted editorials pleading with PM Johnson to not relax restrictions over Christmas as he has promised he will. In Germany, the Health Minister urges the EU to follow the UK and US leads and approve a vaccine before Christmas.

Overnight, Asian markets were mixed and flatish, but leaned to the modestly red side.  Hong Kong (-0.69%) and Australia (-0.43%) paced the losing exchanges.  On the other side, Malaysia (+0.68%) and Shenzhen (+0.39%) led the gainers.  However, most Asian exchanges were moderately down on the day.  Meanwhile, in Europe, we are seeing a mixed but more active market.  The FTSE (-0.35%) is down with the CAC (+0.28%) modestly higher and the DAX (+0.71) bullish so far. However, the biggest moves are seen to the downside by smaller exchanges (Portugal -0.95% and Denmark -0.93%) so far today.  As of 7:30 am, US futures are pointing to a bullish open.  The SPY is implying a +0.71% open, the DIA implying a +0.63% open, and the QQQ implying a +0.60% open at this point in the premarket.  

The major economic news for Tuesday is limited to Import/Export Price Indices and NY Empire State Mfg. Index (both at 8:30 am) and Nov. Industrial Production (9:15 am).  There are no major earnings reports on the day.

With little economic and no major earnings data, the hope surrounding the beginning of vaccinations and hope for stimulus are likely to give the bulls an edge at the open. However, remember Monday, when a gap higher was met with a selloff by the end of the day. Also, keep in mind that politicians are involved in the stimulus and government funding extension negotiations. This just means that posturing and who knows what kind of news could pop-up at any time until the bills are signed. Also, remember we remain near all-time highs.  So, just be careful to not get carried away on either side of the market.

As always, respect the trend, support and resistance, and price action. Stay disciplined to your trading rules and trust your process. Keep taking those singles and doubles that the market offers you. Don't try to wring every penny out of every last share. It's better to sell into strength and book the sure profit. Leave "top picking" to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: EYE, PZZA, DKNG, AMBA, KO, FLEX, PENN, PTON. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

PFE-BTNX Vaccinations Begin Today

Markets gapped down about half a percent Friday and then and after some grinding climbed back to more or less flat for the day.  The SPY fell 0.12%, the DIA roe 0.13%, and the QQQ fell 0.22%.  VXX gained the better part of 4% to 18.00 and T2122 was flat, but remains in overbought territory at 84.62.  10-year bond yields fell a bit to 0.896% and Oil (WTI) was also flat at $46.56.

Late night on Friday, the FDA approved the PFE-BTNX vaccine for emergency use.  This made it legal to ship the vaccine and shipment began on Sunday.  The CDC also approved the administration of the vaccine on that emergency basis on Sunday, which makes it legal to give the vaccine.  So, it is expected that the first vaccinations will begin at up to 145 sites across the nation Monday (there will eventually be up to 636 sites capable of storing and administering the vaccine).  The struggle now will be to gain wide public acceptance of the vaccine and finding ways to get 330 million Americans through the 636 sites. The most recent poll finds that 50% of the US public say they will not take the vaccine. Meanwhile, most epidemiologists say we need a 75%-80% vaccination rate in order to get the herd immunity effect that would allow life and the economy to return to unrestricted levels.

TSLA announced over the weekend that it is shutting down production lines for the S and X models for 18 days.  Employees will be paid for one week of the shutdown and the company urged the laid-off workers to either apply for fill-in shifts on other model production lines or to volunteer to work for other production lines during the remainder of their unpaid leave.  Analysts believe this move is a signal that demand is lower and sagging for the older models of their electric cars.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 16,737,267 confirmed cases and 306,459 deaths.  Friday saw another day of big spike in the US of almost 250,000 new cases.  This brings the 7-day average of new cases to 217,600 while deaths are averaging deaths rose to 2,519/day.  The last week focused on the PFE-BTNX vaccine.  This week it is the MRNA vaccine that will go through the same process of recommendation, approval, and then shipping.  The hope is that the first MRNA vaccinations could happen as soon as Dec. 21 if all goes as planned.

Globally, the numbers rose to 72,737,709 confirmed cases and the confirmed deaths are now at 1,620,676 deaths.  As a reference, the world is averaging about 627,000 new cases and almost 11,000 new deaths per day.  In Germany, the Chancellor announced the country would go on national lockdown over Christmas to stem the surge.  This came as the German Health Minister urged fast approval of the BTNX-PFE vaccine, based on the fact the UK and the US had already reviewed and approved the medicine. Meanwhile, in Asia, South Korean schools are closing again and their healthcare system is under strain (using shipping containers as field hospitals at this point).  In Japan, their own Covid-19 task force is meeting to consider stricter countermeasures as cases surge in the 4 largest cities.  In Africa, the Prime Minister of a tiny country (Eswatini) became the first head of state to die from Covid at age 52. 

Overnight, Asian markets were mixed but leaned to the green side.  Singapore (+1.29%), Indonesia (+1.25%), and Shenzhen (+1.07%) led the gainers.  Hong Kong (-0.44%) and Thailand (-0.44%) paced the losing exchanges.  Meanwhile, in Europe, we are very close to green across the board so far this morning.  The DAX (+1.28%), CAC (+1.11%), and FTSE (+0.42%) are typical of the continent with only a flat Switzerland (-0.04%) stopping a green sweep as of mid-day.  As of 7:30 am, US futures are pointing to a gap up to start the week.  The SPY is implying a +0.75% open, the DIA implying a +0.82% open, and the QQQ implying a +0.63% open at this point in the premarket.  

There is no major economic news for Monday.  There are also no major earnings reports on the day.

With no economic or earnings data, the hope surrounding PFE-BTNX vaccinations and likely MRNA vaccine approval are likely to lead to optimism to start the week.  Resumption of stimulus (and government funding extension) negotiations will also play a big role in front of the Congressional self-imposed deadline of Friday.  (They want to break and head home for the holidays.)  So, with that additional impetus, expect a deal on that front this week as well.   All-in-all, the bulls have a lot going for them this week.  However, we remain near all-time highs.  So, be careful.

As always, respect the trend, support and resistance, and price action. Stay disciplined to your trading rules and trust your process. Keep taking those singles and doubles that the market offers you. Don't try to wring every penny out of every last share. It's better to sell into strength and book the sure profit. Leave "top picking" to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: T, NUAN, NAT, CHWY, MTCH, KO, HON. CAT, BRMN, TPX, PINS, OMER, ZEN. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

PFE-BTNX Vaccine Approval Recommended

Markets gapped down about half a percent Thursday on a much higher than expected increase in Initial Jobless Claims (853,000 vs 730,000 expected) to a 3-month high.  However, a recovery came quickly and the rest of the day was a range-bound gyration back and forth.  At the end of the day, all 3 major indices printed indecisive candles (Doji, Spinning Top, and Large-wick candles).  The SPY was flat at -0.03%, the DIA flat at -0.11% and the QQQ gained 0.40%.  The VXX gained a percent to 17.39 and T2122 (4-week New High/Low Ratio) fell, but remains in overbought territory at 84.43.  10-year bond yields fall on stalled stimulus talks to 0.908% and Oil (WTI) gained 3% to $46.89/barrel.

Once again, the government failed to reach a deal on more stimulus as the market has been expecting.  Senate Majority Leader McConnell outright rejected the bipartisan proposal which had been the basis of negotiations the last couple of weeks, instead saying that plan should be thrown out and new discussions begun around the last-minute plan from the Administration.  (Business liability waivers is McConnell's pet project and that seems to be the snag.) The Democrats felt he was just grandstanding and the change of starting point would be a waste of time. So, the House adjourned for the week (having already passed its one-week stopgap spending bill).  This means there is little likelihood of any progress in talks prior to the December 18 end of funding to keep the government open.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 16,042,537 confirmed cases and 299,703 deaths.  Thursday saw another day of 217,779 new cases and another grim record 2,974 new deaths (about one-third of world totals and we have only about 4% of the population).  This brings the 7-day average of new cases to 212,969 while deaths are averaging deaths rose to 2,407/day.  The FDA’s Vaccine Advisory Committee held a day-long public Zoom call to discuss, explain and then vote on recommending the vaccine. As expected, the vote was to recommend the PFE-BTNX be given approval for emergency use.  This is not a final approval vote, but the full FDA is expected take the committee’s recommendation and quickly approve the PFE-BTNX vaccine.

Globally, the numbers rose to 70,852,192 confirmed cases and the confirmed deaths are now at 1,591,300 deaths.  As a reference, the world is averaging about 625,000 new cases and almost 11,000 new deaths per day.  In Europe, France has extended its lockdown until January 8th, though they are making an exception of Christmas day.  Germany also reported another record number of cases and deaths Friday as their Economic Minister told reporters the country must act now to shutdown the spread before it wrecks the economy.  Russia also reported a record increase in deaths, even though they are a week into mass vaccinations.  AZN announced it will collaborate with the makers of the Russian vaccine for trials and GSK announced their own vaccine will be delayed until late 2021.

Overnight, Asian markets were mixed again.  Malaysia (+1.82%) was a big outlier to the green side, with South Korea (+0.86%) as most green moves were very modest.  On the Downside Shenzhen (-1.31%) and Shanghai (-0.77%) were the big losers.  However, in Europe, markets are red across the board after the EU reached agreement on a $2.1 trillion Covid relief package.  Among the 3 major bourses, FTSE is down 0.99%, DAX down 1.72%, and CAC down 1.04% so far today.  As of 7:30 am, US futures are gap down to start the day.  The SPY is implying a -0.72% open, the DIA implying a -0.63% open, and the QQQ implying a -0.75% open at this point in the premarket.  

The major economic news for Friday is limited to Nov. PPI (8:30 am), Michigan Consumer Sentiment (10 am) and a Fed Speaker (Quarles at 12:40 pm).  There are on major earnings reports on the day.

Once again, the virus, vaccine news, and more delays in stimulus are top of mind in the market.  More bad news related to the Brexit deal has UK PM Johnson telling his country's businesses and people to prepare for an "Australian-style" crash out of EU Trade. This while we sit near the all-time highs. So, continue to be careful and remember the market is overbought.

As always, respect support and resistance, the trend, and price action. Stay true to your trading rules and trust your process. Keep taking the singles and doubles the market offers you. Don't try to sell every last share at the very top penny before the turn. Leave "top picking" to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: STNG, MGM, HAL, JETS, UBER, NAT, ETSY. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Virus and Stimulus Continue to Lead News

Markets essentially opened flat Wednesday and then sold off until 2 pm, possibly on discouraging news on the stimulus front.  From that point, all 3 major indices ground sideways the rest of the day.  This left large black candles that created a Bearish Engulfing signal in the SPY and a Dark Cloud Cover in the DIA.  On the day, the SPY fell 0.92%, the DIA fell 0.46%, and the QQQ fell 2.26%.  The VXX rose 3.68% to 17.20 and T2122 fell 5% but remains in overbought territory at 89.50.  10-year bond yields rose strongly again to 0.939% and Oil (WTI) was flat at $45.62/barrel.

As mentioned, Wednesday saw more bad news related to stimulus, as the major players found another reason to stall the deal.  This comes even though both sides agree on the top line numbers and most of the provisions.  Rather than continue to work on wording around the bipartisan proposal (the basis of the last couple of weeks), Senate Majority Leader McConnell criticized House Speaker Pelosi for not embracing the new Administration offer.  At the same time, Pelosi and Senate Minority Leader Schumer criticized the 11th-hour proposal from Treasury Sec. Mnuchin (who had been absent since before the election) and said negotiations should continue based on the bipartisan proposal.  So, as always, the important thing in Washington is who gets the credit, who loses face, and who can be blamed in the next election much more than it is about the need or available resources

In other federal news, the House has approved a 1-week stop-gap spending bill to avoid a government shutdown.  The extra week is intended to give more time to reach a longer-term spending agreement and the stimulus deal.  The idea is that a desire to leave for the holidays and a government shutdown right before Christmas will be enough pressure on lawmakers to get a deal done.  And finally, the Federal Government and dozens of State Attorneys General sued FB for anticompetitive behavior.  The suit seeks to force FB to divest Instagram and WhatsApp.

Related to the virus itself, US infections continue to rage in the US.  The totals have risen to 15,882,734 confirmed cases and 296,745 deaths.  Wednesday saw another day of 226,762 new cases and another grim record of 3,260 new deaths (about one-third of world totals and we have only about 4% of the population).  This brings the 7-day average of new cases is at 213,361 while average deaths rose to 2,400/day.  The White House Task Force leader Dr. Birx told CNBC overnight that people need to adjust their expectations and that vaccines will not significantly reduce either hospitalizations or deaths until at least late spring.  Until then, only behavior changes can reduce those two numbers.  This came as Dr. Fauci (NIH) again pleaded for the public to avoid gatherings with people outside their immediate family this holiday season.

Globally, the numbers rose to 69,369,386 confirmed cases and the confirmed deaths are now at 1,578,356 deaths.  As a reference, the world is averaging about 625,000 new cases and almost 11,000 new deaths per day.  In potentially concerning news, 2 UK Health Workers have suffered severer allergic reactions after their vaccination jab.  This has caused an immediate change in recommendations for who should and who should not be vaccinated.  For the market, the main gist is that this may cause even more public concern and resistance to vaccination, therefore prolonging the period it will take to reach herd immunity.   Beyond that, hospital beds are in short supply all around the world.  For example, South Korea has begun using cots in shipping containers to supplement its shortage as they are now down to 3% of bed capacity still available for new patients.

Overnight, Asian markets were mixed but leaned to the downside.  Taiwan (-0.98%) saw the worst action, but there was little green elsewhere in the region.  Malaysia (+0.48%) was the best bull outlier example with most Asian exchanges moderately red.  In Europe, markets are also mixed but leaning more heavily to the green side.  The 3 major bourses are typical with the FTSE up 0.78%, the DAX flat at +0.09%, and the CAC up 0.38%.  As of 7:30 am, US futures are pointing to a flat and mixed open.  The SPY is implying -0.01%, the DIA implying -0.13%, and the QQQ a slight drop at -0.33% at this point in the premarket.

The virus, vaccine hope (the PFE-BTNX approval decision is expected any day), and fear over more stimulus delays are fighting for the emotions of the market.  There was also another Brexit Trade Deal failure overnight with the year-end deadline fast approaching. Sitting near the all-time highs and having shown some semblance of resistance here, it feels like the market wants to be bullish, but is scared and waiting for another reason to make the next move.  So, be careful and remember the market is overbought.

Respect support and resistance, the trend, and price action. Stay true to your trading rules and trust your process. Keep booking those singles and doubles. It's the profits you take that pay the bills, not bragging rights. So, leave "picking the very top" to the traders more interested in stroking their ego than making money.

Ed

Swing Trade Ideas for your consideration and watchlist: OMI, F, CAT, ZM, NVDA, SLM, EVRI. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Stimulus May Be Pushed Back Again

On Monday the large-caps gave us a small gap down, followed by an indecisive, Doji type candle day.  The DIA was a Doji Bearish Harami.  The QQQ gave us a small gap up followed by more bullish follow-through. On the day, The QQQ gained 0.57% to close at yet another all-time high.  The SPY lost 0.21% and DIA lost 0.49%.  The VXX gained about half a percent to 17.21 and T2122 remains deep in overbought territory at 94.84.  10-year bond yields fell to 0.928% and Oil (WTI) fell a little over a percent to $45.63/barrel.  In an interesting sidebar, Fresh Water (H2O) began trading as a commodity Monday.

Monday was a bad day and night for stimulus.  Senate Majority Leader McConnell refused to endorse the bipartisan compromise bill and it appears Congress will need to pass a one-week spending extension on Wednesday to keep the federal government open until December 18.  This is being done because the two sides of the stimulus negotiation have agreed on the high-level numbers, but they are not agreed on the wording of the specifics of spending.  So, in order to roll this into an omnibus funding bill, they need to kick the can down the road another week. 

In corporate news, TSLA will offer another secondary stock sale to raise $5 billion.  This is the second time it has sold more stock in 3 months and may be an indication it is trying to squeeze every penny out of a very high market price for the stock.  Meanwhile, GS has agreed to buy out its Chinese partner (and has applied to Chinese Regulators for the right to have 100% ownership of a securities entity in mainland China).  This followed JPM taking 71% ownership in its own Chinese securities joint venture and CS announcing it would like to take 100% ownership of its mainland securities partnership.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 15,370,339 confirmed cases and 290,474 deaths.  Monday saw another record 200,000+ new cases and 1,539 new deaths.  This brings the 7-day average of new cases is at 206,259 while average deaths rose to 2,300/day.  This comes as Dr. Fauci (NIH) told CBS reporters that the “full brunt of Thanksgiving gatherings on the Covid surge” has not hit yet…but it's coming soon. This came as Fauci and several other health experts were urging the public to cancel or dramatically change holiday gathering plans.

Globally, the numbers rose to 68,055,468 confirmed cases and the confirmed deaths are now at 1,553,155 deaths.  The big global news was that the UK has begun giving vaccinations using the PFE-BTNX vaccine.  Due to the extreme cold needed and logistics, at least at first, they are focusing on hospital workers and priority patients (like the elderly) who are already located at a major hospital for appointments. However, across the channel, Germany reached a new record high infection rate.  In Asia, Hong Kong increased restrictions on social distancing yet again while South Korea and Japan have called out their militaries to assist in medical staffing and contact tracing.

Overnight, Asian markets were mixed yet again.  Thailand (+2.01%) was an outlier as the gains were generally modest.  The same is true of South Korea (-1.62%) being abnormal while most losses were quite modest.  In Europe, markets are leaning more heavily to the downside so far today.  Only two minor markets are modestly green, but the 3 major bourses are typical with the FTSE down 0.48%, the DAX down 0.41%, and the CAC down 0.82%.  As of 7:30 am, US futures are pointing to a modest gap down.  The SPY (-0.56%), DIA (-0.47%), and QQQ (-0.39%) are all implying lower opens at this point in the premarket.

The major economic news is very limited for Tuesday. This includes Q3 Nonfarm Productivity and Q3 Unit Labor Costs (both at 8:30 am).  The major earnings releases are also limited and include AZO, GIII, and THO before the open.  Then after the close, CHWY and GME report.

Asia and Europe seem to be leading us lower on Tuesday, perhaps on at least a delay in any US stimulus or on the bad virus news from around the world. With limited economic news or earnings to change that lead, it looks like we may have a lower open. However, remember that hope springs eternal among bulls up near the all-time highs. The point being, it does not pay to fight the trend until it is broken. Just be careful.

Respect support and resistance, the trend, and price action. Remain true to your trading rules and trust your process. Keep booking those singles and doubles. It's the profits you take that pay the bills. So leave "picking the very top" to the traders more interested in stroking their ego than making money.

Ed

Swing Trade Ideas for your consideration and watchlist: NAT, PINS, AAPL, XLC, COOP, AG, SOLO, BLNK, EGO. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Stimulus and Vaccine Hopes Lead Market

On Friday, all 3 major indices had a slight gap up and then the bulls followed through early.  After about 10 am, the rest of the day was a sideways grind.  On the day, the large-caps led as the SPY was up 0.86%, DIA up 0.84%, and the QQQ up 0.41%.  All 3 of the indices then closed at all-time high closes.  The VXX fell almost 2% to 17.11 and the T2122 remains deep in overbought territory at 96.91.  The 10-year bond yields spiked (as money flowed out of bonds) to 0.973% and Oil (WTI) was up at $46.09/barrel.

Over the weekend, leaks from both sides indicated that a stimulus deal could be agreed in the next day or two at an agreed price tag of $908 billion.  GOP Senators have said that Senate Majority Leader McConnell and President Trump will support the legislation.  One of the agreed provisions seems to be a second $1,200 stimulus check, which retailers (particularly online retailers) will find very appealing, assuming it is not too late to get the checks out by year-end.

Chick-fil-A restaurant chain filed suit against all the major poultry suppliers (TSN, PPC, SAFM, JBSS), alleging price-fixing.  In other corporate news, Airbnb raised the price range for their IPO due out on Thursday from $44-$50 to $56-$60 per share.  KODK stock also shot as much as 70% higher in pre-market trading as a federal agency found that they had found no evidence of conflicts of interest from the unusual trading around the July announcement of the company’s pivot and announced government contract to supply ingredients for a potential Covid treatment.

Related to the virus itself, US infections continue to rage across the US.  The totals have risen to 15,159,529 confirmed cases and 288,906 deaths.  Friday saw another record 237, 372 new cases and 2,742 deaths.  The 7-day average of new cases is at 200,012 while deaths are averaging 2,258/day.  The country hit another record number of Covid hospitalizations Sunday as we have seen over 1 million new cases in the first 5 days of the month alone.  In CA, more regions of the state were put under a “stay at home” order, including the San Francisco, Los Angeles, and San Diego regions.  All in all, 33 million of the state’s residents are under the order as cases, ICU capacity, and deaths are at extreme levels. That said, we should also note that the FDA is expected to approve the emergency use of the PFE-BTNX vaccine on Thursday with first vaccinations likely to happen within a day after the approval. A vote on the approval of the MRNA vaccine is expected a week later. Distribution of both will still be challenging as many states only have a handful of hospitals in their entire state with the ultra-cold freezers needed to store and distribute these two vaccines.

Globally, the numbers rose to 67,493,569 confirmed cases and the confirmed deaths are now at 1,543,627 deaths.  In Europe, Denmark has announced a partial lockdown after many cities report record new cases.  The UK is set to begin administering the first batch of PFE-BTNX vaccine on Tuesday.  In Asia, Japan saw another record number of new cases Sunday and South Korea is implementing new restrictions to stay ahead of the spread.  In Indonesia, 1.2 million doses of a Chinese Covid-19 vaccine have arrived with another 1.8 million doses scheduled to arrive by early January.

Overnight, Asian markets were mixed.  Hong Kong (-1.23%) and Shanghai (-0.81%) led the losses while Indonesia (+2.07%) and Taiwan (+0.88%) led the gainers.  In Europe, we see a similar pattern so far in their day.  Belgium (-0.87%) and the CAC (-0.74%) are leading the downside push while Denmark (+0.59%) and the FTSE (+0.38%) lead the gainers.  As of 7:30 am, US futures are pointing to a lower open.  The SPY (-0.37%), DIA (-0.41%), are implying a small gap down while the QQQ (-0.10%) indicates an open on the red side of flat.

There is no major economic news for Monday.  Major earnings releases include JKS before the open and CASY and TOL after the close.

A lack of major econmic news is likely to be overwhelmed by optimism as the UK begins vaccinations with the US a few days behind. That plus the hope for economic stimulus may be enough to let the bulls run. Keep in mind that we are at all-time highs, in an overbought market, and the gains seem tentative. So, just be careful.

As always, don't predict reversals (the trend is your friend until it is broken), but also don't chase moves you missed. Respect support and resistance, the trend, and price action. Remain disciplined to your trading rules. Keep booking those singles and doubles. It's the profits you take that pay the bills, not bragging rights of picking the very top.

Ed

Swing Trade Ideas for your consideration and watchlist: BERY, FUL, KNSL, KURA, RS, FOLD, STNG, ALB, ADP, CCK, ADT, CRBP, XLB, ARNC. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick... I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%.... this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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